3. Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2020

Net income (loss) per share of common stock:

Income (Loss) Per Common Share

Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company's common stock and convertible preferred stock.

For the three and six month periods ended June 30, 2020 and 2019, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

	June 30, 2020		June 30, 2019
Warrants		452,041		250,000
Convertible preferred stock		1,751,005		1,751,005
Total possible dilution		2,203,046		2,001,005